BD’s packaged food market to hit $5.8b by 2030 Says CPD

Business Report :

Bangladesh’s packaged food industry is growing fast and could reach $5.8 billion by 2030, up from the current $4.8 billion, according to Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD).

Citing data from the Bangladesh Investment Development Authority (BIDA), Moazzem said the sector’s growth is being driven by the country’s expanding middle class, changing urban lifestyles, and rising demand for ready-to-eat and processed food.

“The expansion of the agro-processing sector, particularly in packaged food, is no longer just a domestic consumption story it has strong potential to become Bangladesh’s next major export engine,” Moazzem said while presenting a keynote paper at a workshop on agri and agro-processing held in Dhaka’s Gulshan Tuesday.

He noted that with around 40 percent of Bangladesh’s population now living in cities, food habits are changing rapidly. Consumers are increasingly choosing branded and hygienically packaged products such as biscuits, noodles, frozen parathas, juices, and snacks, which now dominate both the domestic market and export portfolios.

Citing data from the Bangladesh Agro-Processors’ Association (BAPA), Moazzem said biscuit exports earned $88.5 million, followed by strong sales of noodles and frozen parathas abroad.

“These products reflect not just strong local demand but also growing international appetite,” he added.

He also pointed to Bangladesh Bureau of Statistics (BBS) projections showing that household food spending will continue shifting toward processed and ready-to-cook items by 2030.

Moazzem said foreign direct investment (FDI) in the food processing sector reached $379 million in FY2024-25, mainly from Dutch investors.

But Bangladesh’s upcoming graduation from Least Developed Country (LDC) status will bring new pressures, as current export subsidies may have to be phased out under WTO rules.

“Future support should focus on productivity, certification, and research and development,” he said, noting that only 12 percent of agro-processing firms currently meet international safety certification standards a major barrier to premium markets like the EU and North America.

To stay competitive, he recommended creating a one-stop digital investment portal, improving labour governance, and promoting green technology adoption.

He also urged the government to shift from cash incentives to low-cost financing, technology upgrades, and sustainability-linked subsidies.

Kamruzzaman Kamal, marketing director of Pran-RFL Group, said his company sources most of its raw materials locally and now exports to 148 countries.

“The quality of Bangladesh’s agro-processed products has reached international standards,” he said, calling for efficient solutions in raw material collection, processing, and marketing.

Reaz Ahmad, editor of the Dhaka Tribune, said the media can play a key role in shaping the future of the sector.

“The media doesn’t just report; it shapes perceptions and policies. Sharing success stories of farmers, innovations, and export potential will help advance the agro-processing sector and strengthen the national economy,” he added.